Analisis Pengaruh Foreign Direct Investment (FDI) dan Aglomerasi Industri terhadap Ketimpangan Pendapatan di Indonesia: Komparasi Kawasan Barat Indonesia (KBI) dan Kawasan Timur Indonesia (KTI) Tahun 2015-2024

Abstract

This study examines the effects of Foreign Direct Investment (FDI) and industrial agglomeration on income inequality in Indonesia, with a comparative focus on the Western Indonesia Region (KBI) and the Eastern Indonesia Region (KTI) during the 2015–2024 period. The research is motivated by persistent regional disparities and the uneven spatial concentration of investment and industrial activities across Indonesian provinces. Using panel data from 34 provinces, the study employs a dynamic panel approach through the Two-Step System Generalized Method of Moments (System GMM) estimator to address endogeneity, dynamic persistence, heteroskedasticity, and autocorrelation issues. Income inequality is measured using the provincial Gini Ratio, while FDI and industrial agglomeration are represented by foreign investment realization and manufacturing labor density, respectively. The results indicate that, at the national level, neither FDI nor industrial agglomeration has a statistically significant direct effect on income inequality. However, the interaction analysis reveals significant regional heterogeneity. Industrial agglomeration exerts a stronger inequality-enhancing effect in KTI than in KBI, suggesting that agglomeration in Eastern Indonesia tends to be more enclave-oriented and less inclusive in distributing economic benefits. In contrast, the differential effect of FDI between KTI and KBI is not statistically significant.